Petroineos, the company which runs the refinery, has informed staff that all oil refining work at Grangemouth had ended.
Workers were told by email yesterday: ‘With the shutdown of CDU2 today, Grangemouth Refinery will cease processing crude oil and the era of refining at Grangemouth comes to an end.’
The news of the final confirmation of the site has come as a hammer blow to staff and is the latest nail in the coffin of Scottish industry.
Reacting to the news that oil refining at Grangemouth has ended Alba Party Leader Kenny MacAskill said:“This is a dark day for Scotland and a betrayal of the workforce by Labour. At the election, they promised to save the refinery but have gone back on that pledge whilst at the same saving British Steel in Scunthorpe.
“Labour have cynically pocketed the votes of the workers and then abandoned them once elected. This is a betrayal for which Labour will never be forgiven.
“Scotland is now the only major oil producing nation in the world not to have its own refining capacity.
“The skills of the workforce have been sacrificed and Grangemouth reduced to an import export terminal.
“This is the cost of the Union and demonstrates how Scotland is powerless without Independence.
“Independence is required so we can protect what is left of Scottish industry and put Scottish workers first.”
The UK Labour Westminster government and the SNP Holyrood government have yet to make an official statement on the end of oil refining at Grangemouth.
The Business Secretary Jonathan Reynolds is pushing ahead with efforts to safeguard British Steel. Today [Tuesday 15 April] he will travel up to Immingham as the raw materials that have been waiting in the dock are unloaded and transported to the site, following the government settling payment for them.
The materials – which have arrived from the US – are enough to keep the blast furnaces running for the coming weeks, with officials continuing to work at pace to get a steady pipeline of materials to keep the fire burning.
A separate ship which contains yet more coking coal is on the way to the UK from Australia. This cargo was the subject of a legal dispute between British Steel and Jingye over the weekend that has now been resolved. The materials have been paid for using existing DBT budgets.
New legislation passed last weekend, in an unprecedented move, gives Government the power to direct the company’s board and workforce, ensure they get paid, and order the raw materials to keep the blast furnaces running. It also permits the Government to do these things itself if needed.
The government acted to protect 37,000 jobs in supply chains and ensure we can build the infrastructure needed to deliver growth which is fundamental to the Plan for Change.
On Monday, Business and Trade Secretary Jonathan Reynolds confirmed the appointment of Allan Bell as interim Chief Executive Officer, and Lisa Coulson as interim Chief Commercial Officer, both with immediate effect – ensuring the right expertise is in place to keep the site running smoothly.
After intensive work over the weekend, the government has secured coke and iron ore pellets for the blast furnaces and is confident there will be enough materials to keep the furnaces burning.
Business and Trade Secretary Jonathan Reynolds said:“We will always act in the interest of working people and UK industry. Thanks to the work of those at British Steel, and in my department, we have moved decisively to secure the raw materials we need to help save British Steel.
“Our industries depend on UK steel and – thanks to our Plan for Change – demand is set to shoot up: helping build the 1.5 million homes, railways, schools and hospitals we need to usher in a decade of national renewal.”
The Scottish Government will take steps to ensure Scotland is as “resilient as we can possibly be” in the face of global economic uncertainty, First Minister John Swinney has said.
Responding to the events of the last few weeks, the First Minister has called for a UK Government response that reflects the fact that “the world is changing around us”.
First Minister John Swinney said: “I know that this is a time of great uncertainty for people, that many families and businesses are worried about what global events will mean for their finances. That is why I want us to be united and creative in our response, to ensure that we are as resilient as we can possibly be.
“My view is that UK response should include removing the self-imposed economic straitjacket of the Chancellor’s fiscal rules and reversing the job – and growth – destroying increase in employers’ National Insurance contributions. The world is changing around us and quite simply, the UK government needs to change too.
“It should include closer alignment with the European Union. If trade barriers are being constructed across the Atlantic, they must be swept away in the Channel and North Sea.
“And it should include investment in Scotland’s green industrial future. If British Steel is to be nationalised to protect it, then so too should Grangemouth.
“If a supercomputer is to be built in the London-Oxford-Cambridge triangle, then the cancelled supercomputer for Edinburgh should be restored.
If carbon capture and storage is to proceed on Tyneside and Merseyside, it should be given an immediate green light for the north-east of Scotland too.
“This is what it means to get serious about Scotland’s economic future. Given the scale of the threat, anything less is not good enough.”
Scottish SecretaryIan Murray MP said: “The SNP were told a decade ago that the Grangemouth refinery would close. They and the Tories did nothing. 3 years ago they could have intervened but nothing.
“Labour win in July and suddenly the SNP want to pass blame. Total charlatans. If they truly cared they’d have done something, anything – but ZERO.
Westminster’s Scottish Affairs Committee will examine the future of the Grangemouth oil refinery as part of its inquiry into GB Energy and the net zero transition on Wednesday 2nd April.
The imminent closure of Scotland’s only oil refinery at the Grangemouth industrial complex, one of Scotland’s major manufacturing facilities, threatens the jobs of around 400 workers.
This evidence session follows the publication of Project Willow, a feasibility study co-funded by the UK and Scottish governments to examine the viability of new sustainable opportunities at the Grangemouth refinery site. Carried out by consultancy EY, the study identified nine projects that could be developed with private sector investment.
The cross-party committee of MPs will question the refinery operator Petroineos, shareholder INEOS, and one of Project Willow’s authors, on the study’s findings.
Witnesses at 9.30am:
Anu Bhambi, Head of Energy Transition Strategy, EY Parthenon
Iain Hardie, Head of Legal and External Affairs, Petroineos
Colin Pritchard, Sustainability and External Relations Director, INEOS Grangemouth
Friends of the Earth: Project Willow “does nothing” for the hundreds of people at Grangemouth set to lose their jobs in the coming months
Plans to secure a long-term industrial future for Grangemouth have been stepped up as a feasibility study sets out nine options for its future.
The plan – which is backed by £25 million from the Scottish Government and £200 million from the UK Government – will support jobs, unlock investment and drive growth.
The £1.5 million feasibility study – published today by EY – follows the recent decision by Petroineos to decommission the oil refinery.
It has identified credible long-term industrial options for the Grangemouth site and explored how Grangemouth can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in low carbon energy production.
The report provides nine proposals likely to attract private investment, including plastics recycling, hydrogen production and other projects that could create up to 800 jobs by 2040.
It follows First Minister John Swinney’s announcement of £25 million to establish a Grangemouth Just Transition Fund, which will support businesses and stakeholders to bring forward investible propositions for the site over the next 12 months, and the Prime Minister’s announcement last month of £200 million to help unlock Grangemouth’s full potential.
First Minister John Swinney said: “We will leave no stone unturned in order to secure the future of the Grangemouth refinery site, and the Scottish Government has already committed or invested a total of £87 million to help do so.
“Grangemouth is home to over a century of industrial expertise and employs thousands of highly skilled workers, placing the site at a massive competitive advantage and creating a unique opportunity for investors.
“Everyone working at Grangemouth’s refinery – and in the wider industrial cluster – is a valued employee with skills that are key to Scotland’s economic and net zero future.
“This report sets out a wide range of viable alternatives for the refinery site, demonstrating that a long term, new industrial future at Grangemouth is achievable.
“We will continue to work closely with the UK Government to realise these opportunities and Scottish Enterprise stands ready to support inward investors looking to progress any of these technologies.”
UK Energy Minister Michael Shanks said: “We committed to leaving no stone unturned in supporting an industrial future for Grangemouth delivering jobs and economic growth.
“This report and the £200 million investment by the UK Government demonstrates that commitment.
“We will build on Grangemouth’s expertise and industrial heritage to attract investors, secure a long-term clean energy future, and deliver on our Plan for Change.”
To kickstart the process, Energy Minister Michael Shanks and Acting Cabinet Secretary for Net Zero and Energy Gillian Martin co-chaired a meeting yesterday (Wednesday 19 March) of the Grangemouth Future Industry Board with local industry leaders, Falkirk Council, trade bodies and unions.
Scottish Enterprise and the UK Government’s Office for Investment will work with Petroineos to market the proposals set out in Project Willow and seek investor interest.
Alongside launching a search for investors, both governments have also committed to review the Project Willow policy recommendations and understand how government funding can be deployed to mature proposals from the private sector.
The nine projects include:
Waste: hydrothermal upgrading (breaking down hard to recycle plastics), chemical plastics recycling, ABE biorefining (breaking down waste material)
Bio-feedstock: breaking down Scottish timber into bioethanol, anaerobic digestion of bioresources and digestate pyrolysis, HEFA (conversion of Scottish cover crops into sustainable aviation fuel and renewable diesel using low carbon hydrogen).
Offshore wind conduit: Replacing natural gas with hydrogen, using low carbon hydrogen to produce methanol and convert it to SAF, producing low carbon ammonia from hydrogen for shipping and chemicals.
Just transition campaigners say Project Willow “does nothing” for the hundreds of people at Grangemouth set to lose their jobs in the coming months, however.
The Project Willow feasibility study, published yesterday:
Sets out 9 possible options for the future of Grangemouth, all of which would require private investment
States up to 800 jobs could be created by 2040
Does not include any support for the hundreds of people set to lose their jobs this year
PetroIneos announced the oil refinery will close by summer 2025. The company instead will import refined oil, effectively offshoring the resultant climate pollution.
Friends of the Earth Scotland just transition campaigner Rosie Hampton commented: “It would be disingenuous to suggest the Project Willow report is a plan for workers and the community at Grangemouth – it’s simply a set of suggestions that would ultimately rely on private investment if they were to happen.
“They haven’t been put together with any involvement from trade unions or workers at the refinery, and it does nothing for the hundreds of people set to lose their jobs when the refinery closes this summer.
“As one of Scotland’s most polluting sites, we’ve known for years that Grangemouth needed a transition plan. There was no excuse for politicians not having the right investment, planning and policy in place, because their inaction has paved the way for the swingeing job cuts by Petroineos.
“It’s welcome that options beyond fossil fuels are finally being considered but the scope of the report has left room for dodgy greenwashing projects which are more about maximising profits for companies than protecting the environment.
“It’s not surprising that a report commissioned by Petroineos using public money doesn’t address that company’s failures to plan for a sustainable future and look after its workforce. The core assumption that private money has to be enticed into investing with government subsidy, for which the public get the risk but not the returns, is a real cause for concern.
“The paper speculates it might be possible to create up to 800 jobs by 2040 but that is 15 years too late for the 400 people at the refinery, and many more across the supply chain, facing the loss of their livelihoods in the next few months.
“The two governments must now set out much tighter criteria for any investments and say how it will build on this to create an actual just transition plan that will protect people and the planet.”
First Minister writes to Scottish Labour Party Leader
Following news the UK Government will invest in Grangemouth’s future, First Minister John Swinney has written to Scottish Labour Party Leader Anas Sarwar inviting him to vote for the 2025-26 Scottish Budget in a “spirit of cooperation” and deliver investment worth almost £90 million to support jobs at the site.
I welcome the response from the Prime Minister to my call last week for the UK Government to provide support for Grangemouth.
I know you share my concern that the decision to close the Grangemouth refinery is premature and fundamentally short sighted and the UK Government’s commitment to additional investment is a step in the right direction. We all have a responsibility to work collaboratively to secure Grangemouth’s long-term future, its workforce and Scotland’s transition to net zero.
My announcement last week that the Scottish Government will make a further £25 million available to enable businesses to bring forward investable propositions for Grangemouth, will be put to Parliament as an amendment at Stage 3 of the Budget Bill tomorrow.
This funding will be made immediately available from the beginning of the next financial year without requiring match-funding.
I hope that when the UK Government provide more details on the announced £200 million being available through the National Wealth Fund that this will also be available for timely deployment on a similar basis as the funding I have set out and that these funds align to best support a just transition for Grangemouth.
In that spirit of cooperation, I trust that you and Scottish Labour colleagues will now be in a position to vote for the Budget at Stage 3 tomorrow and work constructively to deliver the nearly £90 million investment for Grangemouth, supporting the jobs, livelihoods and businesses which depend on it.
Additional £25 million to establish a Grangemouth Just Transition Fund
First Minister John Swinney has announced an additional £25 million to establish a fund to help secure the future of Grangemouth.
During a statement to Parliament he also called on the UK Government to address the immediacy and urgency of the situation facing Grangemouth by at least matching the Scottish Government’s investment.
https://twitter.com/i/status/1891907870150590846
The First Minister said: “The aim of this fund is to expedite any of the potential solutions that will be set out in the Project Willow report, as well as other proposals that will give Grangemouth a secure and sustainable future.
“We have made the strategic decision to support this key activity through an additional draw down of ScotWind revenue totalling £25 million, to add to the £7.8 million in our budget for 2025-26. Altogether, the Scottish Government – with a finite budget – has committed or already invested £87 million in Grangemouth.
“We need the UK Government to do at least the same and deliver a fair amount to avoid significant economic disruption in central Scotland, and to protect and promote Scotland’s – and Grangemouth’s – future interests.”
The First Minister confirmed to Parliament that an amendment will be lodged to the Scottish Government’s 2025-26 Budget Bill to allocate an additional £25 million to establish a Grangemouth Just Transition Fund.
Funds will be available immediately in the new financial year to support businesses and stakeholders to bring forward investible propositions over the next 12 months, and if necessary, beyond.
He added: “We believe that refining at Grangemouth should continue, that this closure is premature and that it is detrimental to Scotland’s transition to net zero.
“We recognise the significance of the fact that we are now facing a programme of redundancies at Grangemouth and the impact this will have on the lives of those employed at the site. Every person, every family and every business impacted by the closing of the Grangemouth refinery, matters. Our immediate focus, rightly, is on providing those who are losing their jobs with targeted skills support.
“Everyone working at Grangemouth’s refinery is a valued employee with skills that are key to Scotland’s net zero future. We want them to stay in Scotland and continue to make their lives here. We will do all we can to ensure they have a future in the Scottish economy as we make the transition to net zero.
“That is why we are also working to secure Grangemouth’s role in that future and create an investible industrial strategy for the site.”
The First Minister also called on the UK Government to continue to work together with the Scottish Government to drive forward the next phase of Project Willow; to expedite a decision on Acorn and the Scottish Cluster of carbon capture projects; and to make urgent progress on allocating funding for the second round of hydrogen production projects.
Grangemouth’s industrial workforce and community are being asked to contribute their views on the future of the area.
A draft plan has been published as part of work to support a just transition to net zero and support the growth of the area towards a decarbonised economy.
The regional just transition plan is the first of its kind. It sets out the Scottish Government’s vision for the future of the Grangemouth industrial cluster and how the local community could benefit as a result.
By successfully decarbonising, Grangemouth can become a global leader in sustainable manufacturing and production, attracting investment and supporting both the existing and future workforce, and the community, long into the future.
The Scottish Government has worked in partnership with the Grangemouth Future Industry Board to develop the Grangemouth Industrial Just Transition Plan which supports industrial decarbonisation, low-carbon manufacturing, net zero community wealth building and reskilling and developing the local workforce.
Proposed actions include:
developing an industry-led technical and commercial investment strategy which includes a decarbonisation pathway to secure investment for scale up
creating a Grangemouth Industrial Skills offer to help tailor training needs for the existing and future workforce
improving the co-ordination of initiatives across the Forth Valley to ensure targeted interventions match needs
funding a recognised Community Engagement and Participation Manager as a first step in supporting the community to play a role in decision making
establishing a Grangemouth Regulatory Hub to support a just transition and understand how regulation can unlock industrial decarbonisation
Acting Minister for Climate Action Alasdair Allan said: “Grangemouth has long played a vital role as Scotland’s leading industrial cluster and it is right that the area continues to help lead the way in our journey to net zero by 2045.
“Our first regional Just Transition plan published today sets out our approach to support the growth of a decarbonised economy that puts local communities at its heart. It makes clear our vision for the future and gives specific actions across a number of areas to help achieve a just transition for Grangemouth.
“The plan complements our ongoing activity focused around Grangemouth, including our support package in response to the proposed closure of the refinery and the work we are doing to explore low carbon transition opportunities for the refinery workforce.
“We are working hard to secure a sustainable, long-term future for the wider industrial cluster and its skilled workforce, and this plan will be vital in helping us to deliver this.
“The consultation is an opportunity to help shape the development of the plan, and Grangemouth’s future. I encourage all who have a vested interest to participate.”
CVS Falkirk and District Chief Executive Officer, Victoria McRae said: “The voice of local communities must be heard in relation to the plans for a Just Transition for Grangemouth.
“As the Third Sector Interface for the local area, CVS Falkirk and District are pleased to be able to take forward, support and facilitate these important conversations. We look forward to hearing a range of views and we have opened a Hub in Grangemouth’s Town Centre to provide a base for this discussion and engagement.”
Syngenta Head of Corporate Affairs UK, Luke Gibbs said: “Syngenta is a large scale fine chemical manufacturer anchoring the Grangemouth Chemical Cluster.
“We believe that the Grangemouth Just Transition Plan is an important part of achieving a sustainable future across the range of activities that together form the wider Grangemouth industrial area – fine chemicals, petrochemicals, pharmaceuticals, and biotechnology.
“As such, this consultation provides a key opportunity for companies in Grangemouth to input their views and highlight needs, and collectively achieve a sustainable, enabling, investable, and viable future for all.”
Join Unite on Thursday 28 November 2024 and help Save Scotland’s last oil refinery.
Get your work colleagues, friends and family to come too. From the Workplace to the Capital, join the rally on Thursday 28 November 2024.
Assemble at 10:00 at Johnston Terrace (top end), Edinburgh, EH1 2PW and at 10.20 march to Holyrood for a rally with Sharon Graham, Unite general secretary.
HOLYROOD and WESTMINSTER GOVERNMENTS RESPOND TO PETROINEOS’ DECISION TO CLOSE OIL REFINERY
The Scottish and UK Governments have announced a joint investment plan for Grangemouth following Petroineos’ decision to decommission its oil refinery and pledged to work together for an industrial future for the site.
The company today confirmed it will cease refining oil at the site during the second quarter of 2025 onwards due to global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa.
This follows years of loss-making, with the company stating that it has lost more than $775 million since 2011 despite having invested more than $1.2 billion to maintain the refinery’s safe operation.
UNITE trade union general secretary Sharon Graeme said the closure is ‘an act of industrial vandalism, pure and simple’.
The Scottish Government has been working with the UK Government to deliver an investment plan that will help secure Grangemouth’s industrial future and protect its skilled workforce.
This includes:
£100 million package. This includes £20 million in joint funding from the Scottish and UK Governments announced today on top of £80 million in joint funding from the two governments for the Falkirk and Grangemouth Growth Deal. This funding will support the community and its workers, investing in local energy projects to create new opportunities for growth in the region. Over the next 30 years, it is estimated that the Falkirk & Grangemouth Growth Deal will deliver over £628 million in economic benefits, with an employment impact of 1660 net jobs across the Falkirk Council area.
Immediate career support for workers. Scottish and UK Government to provide tailored support that will help affected workers in finding new employment.
Investment in the site’s long-term future. The £1.5 million joint-funded Project Willow study has identified a shortlist of three credible options to begin building a new long-term industry at the refinery site, including low carbon hydrogen, clean eFuels and sustainable aviation fuels.
It comes as the UK Government confirmed today it stands ready to engage on how the National Wealth Fund could back projects that have the potential to yield a viable long-term future for the site.
Ministers have confirmed that both governments will put local businesses, workers, and trade unions at the heart of decision-making on determining the region’s industrial future.
Cabinet Secretary for Net Zero and Energy Gillian Martin said:“My immediate thoughts are with the workforce. This is a very challenging time for them and their families, and we will support every worker affected by this decision.
“We are working very closely with the UK Government and together we have communicated our disappointment to Petroineos today.
“The Scottish Government has consistently made clear our preference was for refining to continue as long as possible, and we have continued to press the shareholders for a positive decision until the 11th hour.
“This significant package of support combines immediate help for affected workers and a long-term contribution to ensure that Grangemouth continues to thrive in the future. We are clear that there should be a just transition for the refinery site and we remain committed to bringing forward low carbon opportunities that will sustain skilled jobs across the wider area for many years to come.”
UK Government Energy Secretary Ed Miliband said:“It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.
“We will stand with the workforce in these difficult times, that is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and serve a viable industrial future for the Grangemouth site, with potential for future support from the National Wealth Fund.
“Unlike in the past, the government is working in lockstep with the Scottish Government across every front. Workers and their families should be in no doubt this is a Government that stands with workers, trade unions, and businesses to fight for jobs and investment in Scotland.”
Secretary of State for Scotland Ian Murray said: “I understand this is a worrying time for the workers at the refinery and the UK Government is working closely with the Scottish Government and Petroineos to ensure they are being supported.
“Both governments have invested in Project Willow to examine how Grangemouth remains an energy hub in Scotland. The enhanced £100 million Falkirk and Grangemouth Growth Deal announced today will help ensure the long-term future of the site – a key part of our journey to clean energy by 2030.
“We remain committed to working together looking at how we can help the area build on its skilled workforce and local expertise to boost economic growth.”
The Energy Secretary Ed Miliband and Cabinet Secretary for Net Zero and Energy Gillian Martin have taken joint action to urgently engage with Petroineos, industry experts, and trade unions in exploring all possible solutions to secure a viable industrial site for the future, in the event of a decision from the company to close the refinery.
Ministers continue to urge the company to keep refining open for as long as possible, emphasising the company’s responsibility to its employees and the community.
As the company has made clear that there is no viable commercial future for the refinery business, the Scottish and UK Governments have today unveiled a package to help the workforce, invest in the area and secure a viable industrial future for the Grangemouth site, as one of Scotland’s key industrial heartlands.
The company’s decision to convert to an import terminal means that their fuel supply will now be maintained by importing refined products directly, rather than importing crude oil to refine on site.
This will form part of the UK’s diverse and resilient fuel market, covering both imported fuel and refined oil production. Since 2013, the UK has been a net importer of refined products, with imports accounting for 51% of UK demand for all petroleum products in 2023.
In response to today’s news from the company, the Energy Secretary Ed Miliband will co-chair an immediate virtual meeting of the Grangemouth Future Industry Board, with Cabinet Secretary for Net Zero and Energy Gillian Martin, and the UK Government Secretary of State for Scotland Ian Murray. Ministers will discuss next steps with local industry leaders, Falkirk Council, trade bodies and unions – ahead of an in-person meeting of the Grangemouth Future Industry Board later in Autumn.
‘AN ACT OF INDUSTRIAL VANDALISM’
Unite, the UK’s leading union, has vowed to explore all avenues to preserve high quality jobs at Grangemouth following the announcement that PetroIneos will go ahead with its plans to close its refinery.
PetroIneos confirmed today that it intends to close the refinery at Grangemouth between April – June 2025 and become an import and export only facility. The announcement places in jeopardy the jobs of the 500 workers directly employed (represented by Unite) at Grangemouth and thousands more in the supply chain.
There is widespread fury within the workplace due to the failure of the bosses and politicians to ensure the future of the site.
Unite general secretary Sharon Graham said: “This is an act of industrial vandalism, pure and simple.
“This dedicated workforce has been let down by PetroIneos and by the politicians in Westminster and Holyrood who have failed to guarantee production until alternative jobs are in place.
“This is now the last chance for this Labour government to show whether its really on the side of workers and communities. The road to net zero cannot be paid for with workers’ jobs.
“The government must put its money where its mouth is to ensure the jobs are safeguarded. This is the only refinery left in Scotland and it must remain. There are alternative plans.
“This is yet another example of workers paying for a crisis they did not create while billionaire owners laugh all the way to the bank “
Unite is now in high level talks with the government about alternatives for the site including the production of sustainable aviation fuel.
Derek Thomson, Unite Scottish Secretary said: “The sole objective for Unite remains that the jobs at the refinery and thousands more in the supply chain are protected by any means.
“Unite does not accept that the future of the refinery should have been left to the whim and avarice of shareholders. The complex is critical to the nation’s manufacturing base and energy security. The governments involved cannot simply hide behind the convenient smokescreen that this is a commercial decision which they couldn’t influence.”
The Grangemouth complex is of critical strategic economic and infrastructure importance for Scotland and the UK.
It is the only oil refinery in Scotland and it provides four per cent of its GDP and eight per cent of the nation’s manufacturing base.
The Grangemouth support package announced by the Scottish and UK Governments today includes :–
Joint Grangemouth support package:
The Scottish and UK Governments have today confirmed a joint £100 million support package for Grangemouth.
This includes a total of £20 million in additional investments, to support the local Grangemouth community following the closure of the refinery. It covers:
The £10 million Scottish Government ‘Greener Grangemouth’ programme, that aims to deliver projects at the heart of Grangemouth’s just transition.
£10 million from the UK Government for local energy projects, as well as new skills support from the Office for Clean Energy Jobs to help the site’s workers into good clean energy jobs.
Today’s additional funding comes on top of an £80 million Falkirk and Grangemouth Growth Deal, match-funded by the two governments, to back new industries across the region.
The Growth Deal will support a range of new projects, including:
A bioeconomy plant already in the pipeline, which could use waste whisky and food in chemical production processes to reduce reliance on fossil fuels – via technology currently unavailable in the UK.
A new £9m technology centre to support the development, manufacture and use of low carbon technologies. This will help companies substitute their products and industrial processes for greener alternatives, and will be linked to wider hydrogen and carbon capture use and storage projects.
An employment hub led by one of the UK’s largest operators, Forth Ports, will help develop the skilled workforce needed to support emerging energy sectors. The move will help to drive innovation and attract new investment across sectors, such as offshore wind energy, renewable energy production, storage and distribution, and tidal power.
Immediate career support for workers:
The Scottish and UK Governments are working closely with the company, Petroineos, to provide immediate support for affected workers at Grangemouth refinery, while longer-term projects get up and running on the site.
The trade body Fuels Industry UK will ensure affected Grangemouth workers have direct access to a wide range of potential employers. The association will also work with the specialist skills provider Cogent to host job vacancies from relevant employers for the Grangemouth workforce.
Workers at the refinery will also receive tailored advice, helping them to identify new training opportunities – backed by the Scottish Government’s Partnership Action for Continuing Employment framework.
The UK Government has also confirmed that Grangemouth will be among the first areas that the new Office for Clean Energy Jobs will work with to help deliver a just transition for workers.
Project Willow:
A range of proposals to deliver a viable long-term future for the Grangemouth refinery site have been shortlisted by the UK and Scottish governments, as part of a joint-funded £1.5 million feasibility study.
The project is exploring how the region can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in clean energy production.
Following an initial research phase, the project has identified three potential industries that could be hosted on the refinery site. These are:
The production of low-carbon hydrogen.
Clean eFuels synthesised from chemical components like hydrogen or carbon dioxide
Sustainable aviation fuels which use lower carbon sources like forestry and agricultural waste, used cooking oil and carbon captured from the air to produce jet fuel.
These options will now be tested against their potential to create long-term industries in Grangemouth, support new jobs and contribute to the UK’s clean energy transition. The project will engage extensively with the local community, trade unions, businesses, and industrial experts on rapidly assessing the most viable candidates for industrial production on the Grangemouth site.
The transition to a low carbon economy offers huge opportunities for the town of Grangemouth – but work must be done to ensure that local people and businesses aren’t left behind.
That’s the verdict of a Holyrood committee, which yesterday released the result of its inquiry into a Just Transition for the Grangemouth Area.
The Economy and Fair Work Committee took evidence from local residents, representatives from industry, trade unions and the Scottish and UK Governments as part of a wide-ranging inquiry into how the transition should be managed.
The report makes several key recommendations ahead of the Scottish Government’s own “dedicated and focused Grangemouth just transition plan.” These include a call for the plan to map the transition for the whole area rather than just the industrial site.
Committee Convener Claire Baker MSP said: “Scotland’s just transition to a low-carbon economy presents significant opportunities – not just for the economy, but also for our communities. Nowhere is that clearer than in relation to the Grangemouth Refinery.
“It is clear from the response from the local community that any just transition must maximise opportunities for the town itself, and ensure that the benefits are felt widely.
“The potential for significant regeneration and improvement is on the town’s doorstep, and it is now down to the UK and Scottish Governments, as well as INEOS, to make sure it is fully realised.”
The Committee wants the Government to meaningfully engage with the community and co-design its plans, allowing the community to have a direct impact in the future direction of their town.
The report also stresses the importance of the Acorn Project for carbon capture, which aims to capture and store up to one million tonnes of CO2 by 2027. The Acorn Project is a “critical enabler” for INEOS’ ambitions for the Grangemouth site, according to the report.
Funding for carbon capture lies with the UK Government. Minister Graham Stuart MP told the Committee that while the project was not selected to receive funding in the first round in October 2021, Grangemouth was in “pole position” for future rounds. An update is expected in the summer.
Claire Baker MSP continued: “While the Committee welcomes the sentiment that Grangemouth is well placed to receive funding for carbon capture, these warm words must now be backed up with a commitment. Funding the Acorn Project will truly unlock the potential of the site and must be a priority.”
